Correlation Between Dayamitra Telekomunikasi and Jaya Swarasa
Can any of the company-specific risk be diversified away by investing in both Dayamitra Telekomunikasi and Jaya Swarasa at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dayamitra Telekomunikasi and Jaya Swarasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dayamitra Telekomunikasi PT and Jaya Swarasa Agung, you can compare the effects of market volatilities on Dayamitra Telekomunikasi and Jaya Swarasa and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dayamitra Telekomunikasi with a short position of Jaya Swarasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dayamitra Telekomunikasi and Jaya Swarasa.
Diversification Opportunities for Dayamitra Telekomunikasi and Jaya Swarasa
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dayamitra and Jaya is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dayamitra Telekomunikasi PT and Jaya Swarasa Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Swarasa Agung and Dayamitra Telekomunikasi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dayamitra Telekomunikasi PT are associated (or correlated) with Jaya Swarasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Swarasa Agung has no effect on the direction of Dayamitra Telekomunikasi i.e., Dayamitra Telekomunikasi and Jaya Swarasa go up and down completely randomly.
Pair Corralation between Dayamitra Telekomunikasi and Jaya Swarasa
Assuming the 90 days trading horizon Dayamitra Telekomunikasi PT is expected to generate 1.1 times more return on investment than Jaya Swarasa. However, Dayamitra Telekomunikasi is 1.1 times more volatile than Jaya Swarasa Agung. It trades about -0.05 of its potential returns per unit of risk. Jaya Swarasa Agung is currently generating about -0.41 per unit of risk. If you would invest 63,000 in Dayamitra Telekomunikasi PT on September 1, 2024 and sell it today you would lose (1,500) from holding Dayamitra Telekomunikasi PT or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dayamitra Telekomunikasi PT vs. Jaya Swarasa Agung
Performance |
| Timeline |
| Dayamitra Telekomunikasi |
| Jaya Swarasa Agung |
Dayamitra Telekomunikasi and Jaya Swarasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dayamitra Telekomunikasi and Jaya Swarasa
The main advantage of trading using opposite Dayamitra Telekomunikasi and Jaya Swarasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dayamitra Telekomunikasi position performs unexpectedly, Jaya Swarasa can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jaya Swarasa will offset losses from the drop in Jaya Swarasa's long position.| Dayamitra Telekomunikasi vs. PT Bukalapak | Dayamitra Telekomunikasi vs. PT Sarana Menara | Dayamitra Telekomunikasi vs. GoTo Gojek Tokopedia | Dayamitra Telekomunikasi vs. Elang Mahkota Teknologi |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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